Robinhood launches free Bitcoin, Ethereum trading platform
Five US states included initially, more to follow
US financial services company Robinhood launched on Thursday its Robinhood Crypto platform for commission-free trading of cryptocurrencies.
Initially, the app allows trading in Bitcoin (BTC) and Ethereum (ETH) for users living in five US states, namely California, Massachusetts, Missouri, Montana, and New Hampshire, Robinhood said in a blogpost http://blog.robinhood.com/news/2018/2/21/robinhood-crypto-trading-is-here. The platform is planned to be expanded to include also other digital coins and to reach traders across the USA.
Presently, all users of the Robinhood platform, which offers commission-free trading of US stocks, ETFs, and options, can monitor market data for 16 cryptocurrencies, including Litecoin (LTC), Ripple (XRP), Bitcoin Cash (BCH), and Monero (XMR) among others.
Moreover, the Robinhood Crypto platform includes a Robinhood Feed feature that allows a limited number of users to discuss in real-time anything related to cryptocurrencies and their price swings. The Feed is also set to undergo further development.
Robinhood, which was set up in 2015 by Vlad Tenev and Baiju Bhatt, currently has some four million users who have made transactions worth more than USD 100 billion on the brokerage platform. This has resulted in over USD 1 billion in savings from equity trades commissions, the company estimates.
For comparison, major crypto exchanges Coinbase and Binance have about 10 million and six million users, respectively.
Earlier this month, rapper and producer Jay-Z revealed he has invested an undisclosed sum in Robinhood. According to estimates by Arrive, a subsidiary of Jay Z’s entertainment company Roc Nation, Robinhood is worth USD 1.3 billion.In 2014, the venture received capital support from rappers Snoop Dogg and Nas, and by Jared Leto, the lead singer of 30 Seconds to Mars.